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We build a life cycle model of labor supply that incorporates changes along both the intensive and extensive margin and use it to assess the consequences of changes in tax and transfer policies on equilibrium hours of work. We find that changes in taxes have large aggregate effects on hours of...
Persistent link: https://www.econbiz.de/10012465638
worked and tax rates in three sets of economies: the US, Continental Europe and Scandinavia. While tax rates are highest in … Scandinavia, hours worked in Scandinavia are significantly higher than they are in Continental Europe. I argue that differences in …
Persistent link: https://www.econbiz.de/10012465766
worked in Europe decline by almost 45% compared to the US over this period. This change is almost an order of magnitude … mid 1970s. Third, the decline in hours worked in Europe is almost entirely accounted for by the fact that Europe develops …
Persistent link: https://www.econbiz.de/10012465767